March 12, 2010
CAPITAL REAPPROPRIATIONS BILL SLATED FOR QUICK ACTION NEXT WEEK
As reported in Gongwer
In a further sign that it will remain non-controversial, the Senate set an expedited schedule for
the capital reappropriations measure (HB 462) that could see the $3.2 billion bill clear both
chambers next week.
The bill is slated for a second hearing and vote on Monday in the House Finance &
Appropriations Committee, with a full chamber vote expected Tuesday.
The Senate Finance & Financial Institutions Committee set hearings on the measure for
Tuesday afternoon and Wednesday morning, eyeing a full Senate vote later that day.
The bill mostly reauthorizes spending for ongoing capital projects during fiscal years 2011 and
2012, but also includes $525 million in new appropriations for bond-backed expenditures by the
Ohio School Facilities Commission and $145 million for the Ohio Public Works Commission.
If the bill, which impacts some 1,200 projects, proceeds like the last capital appropriations
measure, the legislature will enact it without any major changes or controversial provisions.
Indeed, Sen. John Carey (R-Wellston), Chairman of the Senate Finance Committee, said that
was the gist of an agreement between the Senate President, House Speaker, and Governor.
"They've all agreed to keep it a clean bill other than technical changes," he said.
House Republicans had questioned the state's spending pace and debt load and raised other
concerns during the first hearing on the bill this week, however Senate President Bill Harris (RAshland) said he did not foresee any problems in processing it in short order.
LAND BANK AUTHORITY EXPANSION CLEARS SENATE COMMITTEE
The Senate Ways and Means Committee reported HB 313 (Rep. Ujvagi, Toledo) was this
week. The bill would extend the ability to organize a County Land Reutilization Corporation
(CLRC) to those counties with a population of 60,000 or more, as of the most recent federal
decennial census. Initially created as a “pilot” program authorized for Cuyahoga County, that
county’s successful use of a land bank program has led the legislature to consider expanding
the land banking authority to additional counties. A CLRC is a nonprofit corporation created for
the purposes of promoting development and managing and facilitating the reclamation,
rehabilitation, and reutilization of vacant, abandoned, or tax-foreclosed real property.
1
The bill also establishes the composition and selection of the board of directors of a CLRC. The
board, which can be either five, seven, or nine members, must include the county treasurer; at
least two of the members of the board of county commissioners; one representative of the
largest municipal corporation; one representative of a township with a population of at least
10,000 in the unincorporated area of the township, if such a township exists in the county; and
any remaining members the treasurer and county commissioners select. At least one board
member must have "private sector or nonprofit experience in rehabilitation or real estate
acquisitions."
Before reporting the bill, the Committee approved several key amendments. The first reduced
the minimum population threshold to 60,000 to give more counties the ability to use the county
land reutilization corporation. Based upon this threshold, the following counties would be
eligible to establish a land bank program: Athens, Belmont, Butler, Clark, Clermont,
Columbiana, Delaware, Erie, Fairfield, Franklin, Geauga, Greene, Hamilton, Hancock,
Jefferson, Lake, Lawrence, Licking, Lorain, Lucas, Mahoning, Marion, Medina, Miami,
Montgomery, Muskingum, Portage, Richland, Ross, Sandusky, Scioto, Stark, Summit, Trumbull,
Tuscarawas, Warren, Washington, Wayne, and Wood.
CCAO supported the second amendment, which would clarify and expand county authority to
place Ohio State University Extension levies and Soil and Water levies on the ballot. Cheryl
Subler, Managing Director for Policy at CCAO, testified in support of this amendment noting that
the amendment would get the statute to catch up with the OSU extension levy practice that has
been going on already and authorize soil and water tax levies could be ufor both projects and
operating costs.
There also was an amendment modifying the New Community Authority statute to revise the
definition of “community development charges” to allow using business revenues as one of the
options upon which the methodology for the charge could be based. The amendment also
would allow NCAs to finance a wider range of facilities, including residential, commercial,
industrial, research, and distribution facilities.
No amendment was included restricting a water utility’s ability to place a lien on rental property
to recover for unpaid services by renters.
GOV’S ECONOMIC ADVISORS SEE SLOW RECOVERY AS STATE TAX REVENUES AND
UNEMPLOYMENT STAY STEADY IN FEBRUARY
A group of economists that informally advise Gov. Ted Strickland continue to see a slow
recovery for Ohio and predicted that double-digit unemployment will persist through at least the
next fiscal year.
In fact, based on the standard of a half-percentage point a year improvement in a typical
recovery, it could take years for Ohio's unemployment rate to return to typical levels, according
to participants in a briefing by the Governor's Council of Economic Advisors.
Ohio's unemployment rate for January was 10.8% and unchanged from December's adjusted
rate, the Ohio Department of Job and Family Services announced Friday. The national
unemployment rate for February was unchanged at 9.7%, according to data released Friday.
The national rate is down from 10% in December.
2
A bounce back of sorts in personal income tax (PIT) revenues helped the state pick up some
ground in February, but coffers remained slightly behind budget analyst estimates for fiscal year
2010.
The $935 million in tax receipts for the month was $24.2 million, or 2.7%, ahead of Office of
Budget & Management projections, according to preliminary revenue tables. The fiscal year-todate tax total of about $10.2 billion is $75 million, or 0.7%, below agency estimates.
Tax collections had been running slightly above or dead-on with expectations prior to January,
which saw a PIT-led dive in revenues that put coffers $100 million in the red compared to
estimates.
On another bright note, sales taxes continued to be a consistent performer for the state in
February, as the category was ahead of schedule for both auto and non-auto transactions. All
told, the $496.3 million in total sales tax collections was $6.8 million, or 1.4%, above OBM
projections, the state reported. Through the first eight months of the fiscal year, the $4.73 billion
in sales tax intake is $28.7 million, or 0.6%, better than estimates.
State coffers took the biggest hit last month in the corporate franchise tax, which has for the
most part been phased out and now applies mostly to only financial institutions. The category
was $16.6 million below estimates last month and is trailing year-to-date projections by $31.1
million.
The largest FY 2010 underage, however, remains in the PIT, which is trailing projections by
$72.8 million, or 1.6%, according to OBM data.
While last month's tax receipts were comparable to those in February 2009, the year-to-date
intake remains well below that of the first eight months of FY 2009, OBM reported. This year's
revenues now are more than $1 billion, or 9%, less than last year's were at this point.
WIND INDUSTRY PUSHES FOR RENEWABLE ENERGY TAX BREAK
International wind power developers and a few local officials lined up in support of a proposed
tax break for renewable energy production during hearings of the Senate Energy & Public
Utilities Committee on Tuesday and Wednesday.
The measure, sponsored by committee chairman Sen. Chris Widener (R-Springfield), is an
alternative to Gov. Ted Strickland's proposal to eliminate the tangible personal property tax for
wind and solar energy companies. The bill (SB 232) would create a $6,000 per megawatt
annual fee in lieu of TPP tax for renewable energy facilities.
Meanwhile, House Ways & Means Committee Chairman Rep. Tom Letson (D-Warren) said
Rep. Roland Winburn (D-Dayton) is preparing to introduce a similar proposal Wednesday. The
House measure also would offer a $6,000 per MW payment in lieu of taxes for renewable
energy developers, he said. However it would create a tiered system of payments that would be
linked to a company's rate of Ohio-based employment.
Groups representing schools and local government entities, which receive the majority of TPP
tax revenue from utility companies, expressed concern with both proposals from Sen. Widener
and Gov. Strickland. CCAO recognizes that some counties are anxious for wind turbine
development, yet wants to insure that tax policy changes don’t have long-term negative
3
repercussions. In addition CCAO would like such developers to address any road damage that
occurs as a result of the turbines. For more information on alternative energy tax legislation,
please contact CCAO Policy Analyst Josh Hahn at [email protected].
HOUSE PASSES LIVESTOCK CARE BOARD MEASURE
House Bill 414, a measure to implement last fall's successful constitutional amendment to
create a livestock care board, passed the House unanimously Wednesday.
Among the duties of the new board will be to develop "best practices" for the care and
maintenance of livestock, disease prevention, morbidity and mortality data, food safety
practices, protection of food supplies, generally accepted veterinary practices, and ethics, said
the sponsor, Rep. Sayre (D-Dover).
Rep. James Zehringer (R-Ft. Recovery), a former Mercer County Commissioner said in support
of the measure that voters last November sent a "clear message" that Ohioans and not "out-ofstate radical special interest groups" should set standards for state farmers.
The Humane Society of the United States, which opposed last year's ballot issue, currently is
collecting signatures for a follow-up issue to amend the livestock care board's guidelines.
LEGISLATORS UNVEIL THEIR PLAN TO CURB CORPORATE CAMPAIGN
CONTRIBUTIONS IN LIGHT OF SUPREME COURT DECISION
As compiled from Gongwer
Representatives Jay Goyal (D-Mansfield) and Dennis Murray (D-Sandusky) this week
announced plans to introduce a bill that would ban independent campaign contributions from
companies that are regulated heavily or have contracts or receive financial assistance from the
state. This bill is in response to the U.S. Supreme Court’s Citizens United decision, as
explained in detail in last week’s Statehouse Report.
Rep. Goyal used public utility companies subject to the PUCO’s regulation as an example of a
heavily regulated company, which would be prohibited from spending money from their
corporate treasuries to influence elections. In addition, the measure would require additional
reporting requirements for corporate and labor union political expenditures, he said. Moreover,
corporations and unions would have to submit information on their campaign spending with the
Secretary of State's Office.
The bill would block direct campaign expenditures from companies that receive more than 10%
of their annual revenue from state contracts and from entities that receive Ohio grants, loans, or
tax credits worth more $250,000 a year, he said.
The proposal further would require corporate boards to publicly authorize any political
expenditure. The measure would not ban corporate or union contributions to political action
committees with appropriate disclosure, Rep. Murray said.
Rep. Goyal said there was some overlap with Secretary of State Jennifer Brunner's recent
proposal on financial transparency and reporting provisions (also explained last week in
Statehouse), but his and Rep. Murray’s bill would be more far-reaching in banning campaign
expenditures from corporate treasuries.
4
If you have any questions or concerns as this issue evolves, please contact Beth Tsvetkoff at
614-220-7996 or [email protected].
OHIO SUPREME COURT ACCEPTS TOBACCO SETTLEMENT APPEAL
On Wednesday, the Ohio Supreme Court decided to accept a national anti-tobacco group’s
appeal in the case involving the Governor’s and General Assembly’s decision to use moneies
formerly designated to the Ohio Tobacco Prevention Foundation for purposes other than antismoking and smoking cessation. One of these purposes is to support county human services at
$46 million per year.
In December 2009, the 10th District Court of Appeals reversed the trial court and ruled in favor of
the Governor and General Assembly on the issue of using the tobacco settlement dollars for
purposes other than smoking cessation and anti-smoking. As you may recall, CCAO, the Ohio
Job and Family Service Directors Association, the Public Children Services Association of Ohio,
and the Ohio Child Support Enforcement Agency Directors Association filed an amicus brief
supporting the state in the lawsuit concerning those funds.
As the group of county associations did for the Court of Appeals, likely we will file an amicus
brief with the Supreme Court. We will keep you up-to-date on the case’s progress. If you have
any questions or concerns, please contact Beth Tsvetkoff at 614-220-7996 or
[email protected].
BILL INTRODUCTIONS:
HB 462 CAPITAL REAPPROPRIATIONS (Sykes) To make capital reappropriations for the biennium
ending June 30, 2012, and certain capital appropriations.
COMMITTEE SCHEDULE:
Monday, March 15
House Finance & Appropriations, (Chr. Sykes, 466-3100), Rm. 313, 5:00 pm)
HB 462 CAPITAL REAPPROPRIATIONS (Sykes) To make capital reappropriations for the biennium
ending June 30, 2012, and certain capital appropriations. --2nd Hearing-Possible vote
Tuesday, March 16
House Elections & Ethics, (Chr. Stewart, D., 466-1896), Rm. 122, 8:30 am
HB 336 CAMPAIGN CONTRIBUTIONS (Garrison) To prohibit an elected officer of a political
subdivision or a candidate for an elective office of a political subdivision from accepting
contributions from an employee of that political subdivision who is or who would be supervised,
directly or indirectly, by the public officer or candidate. --3rd Hearing-All testimony-Possible
amendments
Senate State & Local Government & Veterans Affairs, (Chr. Hughes, 466-5981), South Hearing Rm.,
10:00 am
HB 48 MILITARY LEAVE (Ujvagi) To provide two weeks of leave for any employee who is the spouse
or parent of a member of the uniformed services who is called to active duty or is injured,
wounded, or hospitalized while serving in a combat zone. --3rd Hearing-All testimony
5
SB 35 IMMIGRATION ENFORCEMENT (Stewart, J.) To direct the Attorney General to pursue a
memorandum of agreement that permits the enforcement of federal immigration laws in this state
by law enforcement officers. --6th Hearing-All testimony-Possible amendments/substitute & vote
SB 150 DEPORTATION CUSTODY (Cates) To provide that a board of county commissioners may
direct a sheriff to take custody of persons who are being detained for deportation or who are
charged with criminal violations of immigration law and to expressly authorize state and local
employees and county sheriffs to render assistance to federal immigration officials in the
investigation and enforcement of federal immigration law. --5th Hearing-All testimony-Possible
amendments/substitute & vote
House Session, (Chr. Budish, 466-3357), House Chamber, 11:00 am
House Local Government/Public Administration, (Chr. Chandler, 466-2004), Rm. 114, 11:30 am or
after session
HB 220 LOCAL GOVERNMENT NOTICES (Chandler) To implement the recommendations of the
Local Government Public Notice Task Force by authorizing legal publication to be made in a
newspaper of general circulation, eliminating certain publication and postal privilege
requirements, reducing the number of times publication must be made, requiring newspapers to
establish a government rate for publication, allowing publication of a summary of an ordinance
rather than publishing it in its entirety, and allowing the costs of publishing delinquent property tax
lists to be charged to delinquent taxpayers. --2nd Hearing-All testimony-Substitute
HB 404 COUNTY TREASURER FEES (Bolon) To increase county treasurer fees for property tax
collection and to modify how those fees are to be computed. --3rd Hearing-All testimony
HB 389 COUNTY BUDGETS (Huffman) To authorize counties to adopt a direct deposit payroll policy,
and to authorize counties to increase the amount credited to "rainy day" reserve balance
accounts to one-sixth of the expenditures made in the preceding fiscal year from the fund in
which the reserve balance account is established. --3rd Hearing-All testimony
Senate Session, (Chr. Harris, B., 466-4900), Senate Chamber, 1:30 pm
Senate Finance & Financial Institutions, (Chr. Carey, 466-8156), Finance Hearing Rm., 2:30 pm or
after session
HB 462 CAPITAL REAPPROPRIATIONS (Sykes) To make capital reappropriations for the biennium
ending June 30, 2012, and certain capital appropriations. --1st Hearing-Sponsor & OBM-Pending
referral
Wednesday, March 17
Senate Finance & Financial Institutions, (Chr. Carey, 466-8156), Finance Hearing Rm., 9:00 am
HB 462 CAPITAL REAPPROPRIATIONS (Sykes) To make capital reappropriations for the biennium
ending June 30, 2012, and certain capital appropriations. --2nd Hearing-All testimony-Possible
amendments & vote
Senate Agriculture, (Chr. Schuring, 466-0626), North Hearing Rm., 9:00 am
HB 414 LIVESTOCK STANDARDS (Sayre, Bolon) To establish requirements and responsibilities of the
Ohio Livestock Care Standards Board and the Director of Agriculture in administering and
enforcing the rules adopted by the Board that govern the care and well-being of livestock in this
state. --1st Hearing-Sponsor-Pending referral
SB 233 LIVESTOCK CARE (Gibbs) To establish requirements and responsibilities of the Ohio
Livestock Care Standards Board and the Director of Agriculture in administering and enforcing
the rules adopted by the Board that govern the care and well-being of livestock in this state and to
make an appropriation. --3rd Hearing-All testimony
6
HB 108 COCKFIGHTING (Domenick) To increase the penalty for cockfighting. --3rd Hearing-All
testimony
HB 175 HUMANE AGENTS (Gerberry) To require a person to file proof of successful completion of
training with the county recorder prior to being appointed as a humane society agent and to
require the revocation of an appointment under certain circumstances. --6th Hearing-All
testimony-Possible vote
Senate State & Local Government & Veterans Affairs, (Chr. Hughes, 466-5981), North Hearing Rm.,
11:00 am
SB 35 IMMIGRATION ENFORCEMENT (Stewart, J.) To direct the Attorney General to pursue a
memorandum of agreement that permits the enforcement of federal immigration laws in this state
by law enforcement officers. --8th Hearing-All testimony-Possible amendments/substitute & vote
SB 150 DEPORTATION CUSTODY (Cates) To provide that a board of county commissioners may
direct a sheriff to take custody of persons who are being detained for deportation or who are
charged with criminal violations of immigration law and to expressly authorize state and local
employees and county sheriffs to render assistance to federal immigration officials in the
investigation and enforcement of federal immigration law. --7th Hearing-All testimony-Possible
amendments/substitute & vote
House Session, (Chr. Budish, 466-3357), House Chamber, 1:30 pm --Canceled
Senate Session, (Chr. Harris, B., 466-4900), Senate Chamber, 1:30 pm
7